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$JPM JPMorgan Chase reported stronger-than-expected earnings for the first quarter of the year, with profit rising 13% compared to the same time last year. The bank earned $5.94 per share, which beat Wall Street’s estimate of $5.45. Overall revenue also came in higher than expected, showing that the bank performed better than analysts thought it would. A big reason for the strong results was market volatility, meaning prices in stocks, bonds, and other investments were moving up and down a lot. This often helps big banks because it increases trading activity. JPMorgan’s trading division had record performance, with revenue rising sharply as clients bought, sold, and hedged investments more frequently. Investment banking fees also went up because more companies were involved in deals and fundraising. CEO Jamie Dimon said the U.S. economy is still holding up well, even though there are risks building around the world. He pointed to issues like rising geopolitical tensions and uncertainty around conflicts such as the war involving Iran, which have helped push energy prices higher and created more uncertainty in financial markets. These risks don’t necessarily hurt banks right away, but they make the future harder to predict. Even with those concerns, consumers are still spending and borrowing, which helps support the economy. JPMorgan’s loan income also rose as demand for credit increased. Overall, the bank’s results show a mixed picture: strong current profits driven by trading and dealmaking, but caution about what global instability and inflation could mean in the future.

Citigroup said its profit jumped 42% in the first three months of the year. The bank made more money because global tensions made markets swing up and down, which helps trading desks. At the same time, strong deal activity helped the bank earn more fees from investment banking work. Much of the market movement came from rising conflict in the Middle East, especially around the Strait of Hormuz, which affected oil shipping and energy prices. There were also worries that artificial intelligence could hurt some software companies, causing investors to sell those stocks. When prices move quickly like this, clients trade more often, and that increases the bank’s trading revenue. For the quarter ending March 31, Citi earned $5.8 billion, or $3.06 per share, compared to $4.1 billion, or $1.96 per share, a year earlier. Revenue reached $24.6 billion, the highest it has been in ten years. Trading revenue rose 19%, with big gains in stock trading, commodities, and bonds. Investment banking revenue also rose 15%, helped by more stock offerings and merger deals. CEO Jane Fraser said the bank is still on track to meet its full-year goals. Citi has nearly finished selling off parts of the business it no longer wants and bought back $6.3 billion of its own shares. Interest income from loans also increased, and the bank’s wealth and retail division grew steadily. Over the past year, Citi’s stock price has more than doubled as investors gain confidence in the company’s turnaround.

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$GS Goldman Sachs reported higher profits in the first three months of the year because it made more money from dealmaking and stock trading. Markets around the world have been shaken by the war with Iran, which pushed oil prices higher and raised fears about inflation and a possible recession. This uncertainty caused many investors to rethink their portfolios and protect themselves from losses. That type of activity usually helps big banks like Goldman Sachs because clients trade more and seek financial advice. Goldman’s CEO, David Solomon, said the global situation is very complicated and that careful risk management is more important than ever. The bank’s stock trading business brought in a record $5.33 billion, up 27% from last year. However, revenue from trading bonds, currencies, and commodities fell 10% to $4.01 billion. Overall, profit for shareholders rose to $5.4 billion, or $17.55 per share, compared to $4.58 billion, or $14.12 per share, a year earlier. Even with global tensions, many Wall Street leaders believe mergers and acquisitions will stay strong this year. A lighter approach to regulations under President Donald Trump and rapid growth in artificial intelligence are expected to keep deal activity high. In the first quarter, global merger deals reached $1.38 trillion. Goldman worked on major deals, including advising Unilever on a planned $65 billion food business merger with McCormick and helping Equitable with a $22 billion insurance deal with Corebridge. Because of this work, Goldman’s investment banking fees jumped 48% to $2.84 billion. Goldman’s asset and wealth management division also performed well, with revenue rising 10% to $4.08 billion. The bank has focused on growing this area because it brings in steadier income than trading. Its private credit fund avoided large investor withdrawals, even as fears about artificial intelligence affecting company profits worried many investors. Goldman also completed the purchase of Innovator Capital Management, increasing its exchange traded fund assets to $90 billion and strengthening its position in long term investment management.

#Earnings this week.

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$DAL Delta Air Lines said it expects lower profit than usual in the second quarter because jet fuel prices have jumped sharply due to the war involving Iran. The airline also said it is too early to update its full-year forecast because fuel prices are still unpredictable. To deal with the higher costs, Delta is canceling all of its planned flight growth for the summer, which reduces how many seats it will offer by about 3.5% compared to earlier plans. Jet fuel prices have nearly doubled since late February, creating one of the biggest challenges for airlines since the pandemic. Fuel normally makes up about one-quarter of an airline’s costs, and airlines often sell tickets weeks or months in advance, which makes it hard to quickly raise prices when fuel suddenly gets more expensive. Delta’s CEO, Ed Bastian, warned that these high fuel prices could cause major changes across the airline industry, where stronger airlines survive and weaker ones struggle. Even with the higher costs, Delta said travel demand is still strong. The company plans to recover about 40% to 50% of the extra fuel costs by raising ticket prices, baggage fees, and other charges. Delta also expects to benefit from its own oil refinery, which could add about $300 million in savings this quarter. Recently, Delta and other airlines like United and JetBlue raised checked-bag fees, and Delta believes these higher fees may stay in place if fuel prices remain high. Delta expects to earn between $1.00 and $1.50 per share in the second quarter, which is lower than what analysts expected. However, the airline did report better-than-expected earnings for the first quarter, earning 64 cents per share. While Delta previously predicted strong earnings for the full year, it is now holding off on updating that outlook because the situation with fuel prices and global events is still uncertain.

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#Earnings this week

This week, investors are paying close attention to new reports about inflation, oil prices, and company earnings. Even though the stock market had a rough week after President Trump’s national address and growing conflict in Iran, most major stock indexes still ended the week slightly higher. The S&P 500 and the Nasdaq both posted gains, while the Dow dipped slightly but still finished the week up overall. However, all three indexes are still down for the year, even after recovering from earlier losses. A big focus this week will be two important inflation reports. On Thursday, the government will release the Personal Consumption Expenditures (PCE) report, and on Friday, the Consumer Price Index (CPI) will be released. These reports show how much prices are rising for everyday goods and services. Investors will also look at a new consumer confidence survey from the University of Michigan to see how people are feeling about the economy and their finances. Last week’s jobs report surprised many experts. The U.S. economy added 178,000 jobs in March, much more than the 65,000 economists expected. This was a big change from February, when jobs were lost. Over the past few months, job numbers have gone up and down, but overall, they show steady growth. Because hiring is still strong, the Federal Reserve may feel less pressure to lower interest rates soon, even though the economy is slowly cooling. Oil prices are also playing a major role in this week’s outlook. Since the conflict in the Middle East began, oil prices have jumped more than 50%, with gas prices now above $4 per gallon in many places. This rise is expected to show up in the inflation reports. Airline earnings, especially from Delta Air Lines, will give more clues about how higher fuel costs are affecting businesses and consumers. With shipping routes in the Strait of Hormuz disrupted and tensions still high, markets are worried that oil prices could rise even more if the conflict continues.

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$NIK Nike is trying to steady its business, but new problems are getting in the way. Company leaders warned that conflict in the Middle East is hurting shopping activity in parts of Europe, the Middle East, and Africa. At the same time, Nike is still having trouble rebuilding its sales in China, which used to be a strong market for the brand. The company said it expects a sharp drop in sales this quarter and admitted its recovery is moving slower than planned. Higher costs from trade issues are cutting into profits, and many shoppers are spending less money. After this news, Nike’s stock fell about 10% in premarket trading, putting it on track to open at its lowest price in more than 10 years. On a call with investors, Chief Financial Officer Matthew Friend explained that the unrest in the Middle East has already changed how and where people shop. Fewer customers are visiting stores, and sales of sportswear have weakened in those regions. Market analyst Josh Gilbert from eToro said the conflict is also causing extra inventory to build up across the EMEA region. CEO Elliott Hill, who took over in 2024, is trying to improve Nike’s performance by cutting back on discounts, creating better products, and focusing on popular categories like running, which grew more than 20% last quarter. Still, analysts believe Nike has a long road ahead. Several firms lowered their price targets for the stock, noting that while Nike is making progress, the recovery is slower than many investors hoped.